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BBC World News

News/Business. Matt Frei, Katty Kay. International issues. (CC) (Stereo)

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Spain 16, Madrid 7, U.n. 6, Euros 6, Oslo 4, Ramallah 4, China 4, David Cameron 3, United States 3, Mexico 2, Syria 2, Kyi 2, United Nations 2, Beijing 2, Yasir Arafat 2, George Alagiah 2, Newman 2, Mahmoud Abbas 2, Burma 2, Kcet 2,
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  WHUT    BBC World News    News/Business. Matt Frei, Katty Kay.  
   International issues. (CC) (Stereo)  

    September 27, 2012
    7:00 - 7:30am EDT  

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>> this is "bbc world news." funding of this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation, and union bank. >> at union bank, our relationship managers work hard to know your business, offering specialized solutions and capital to help you meet your growth objectives.
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we offer expertise and tailored solutions for small businesses and major corporations. what can we do for you? >> and now, "bbc world news." >> in the next hour, the spanish government will unveil its latest austerity measures, cuts of up to 40 billion euros. they can expect a fire reception. there have been two days of protests. we will be looking at how the markets react. >> hello, and welcome to "gmt." i'm george alagiah what a world
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of news and opinion. also -- reward for reform. deliver clinton says it will believe -- america will lead the import ban on burmese products. >> thought of will be good to do this. >> we have the question that the british prime minister could not answer on america's influence of talk show. it is midday in london, 7:00 a.m. in washington and 1:00 in the afternoon in the did -- in madrid where the spanish government is due to unveil the latest controversial cuts. there are speculation pensions could be cut back, taxes raised in-state own businesses privatized. prime minister mariano rajoy is looking to slash spending by some 40 billion euros, about $50 billion. the prospect of yet more austerity for a country in deep recession -- unemployment running staggering 25% -- has already seen thousands take to
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the street in clashes with police brief was get the latest from our correspondent in the madrid. >> the frustration of some people here in spain and particular the young, has pulled over on to the streets for two nights running here in madrid. they were not the violent demonstrations we saw from the night before but there was some tension last night. but many here in spain feel the government here has no choice, that it needs to reduce its spending to balance its budget for the to convince the eurozone which have already helped out the banks here and might have to help spain again. late last night, thousands again gathered on the roads around spain's parliament. again, a tense atmosphere as the police moved in. but there was not violence, like the night before. all this as the government prepared to set out its budget for next year.
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>> the sense of deja vu as the spanish government once again cut tens of billions of euros from its budget. this is bain doing its part of its deal with the eurozone, which has already pledged up to 100 billion euros for troubled banks here and will soon probably have to help spain again. what is the spanish government trying to do? it has to reduce its budget deficits. it needs to make savings this year of 62 billion euros and 40 billion euros in 2013. but fear is that a deteriorating recession makes hitting those targets ever harder. >> you need the revenue to pay your debts. but then, of course consumption goes down so you don't have money to pay your debts. there is no growth. spain is in recession. next year it will stay in a recession. so, yes, it is a vicious circle. really impossible to solve this conundrum.
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>> all the pressure from the eurozone partners, there is anger by those -- from those affected by cuts. health workers demonstrate every day near the country's biggest hospitals. government projects will again be slashed to day as people here struggle and a deepening recession. >> the demonstrations are daily here and there are likely to increase in size and number. but what we are seeing from these reforms -- slashing public spending -- is really spain doing its part of the bargain and head of a possible second bailout. the government says it needs to rein in its finances if it is going to get growth and to the economy again. >> that is debatable, tom, isn't it? some of the critics and your reports, they are going to argue this kind of austerity, the new budget everyone is expecting, is like taking a man when he is down. >> and that is the problem. the problem is unemployment.
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it is so high that the -- it not only means government is paying out more in unemployment benefits but also taking in less in income tax. as we heard in the report from the analyst, spain's economic problems seem to be in a vicious cycle. in that context it is very difficult for the government to sort its own finances out if it reduces what it spends into the economy by billions today and more than that over the course of this year. then of course, there is less money floating around, less people have money in their pockets to spend and more out of work. so there is the general malaise in the economy contributed to the situation in was the government and country finds itself today. >> thanks very much. thank you. let's explore this a little bit more with aaron. the spaniards are waiting, we are waiting but most important of all, perhaps the markets are waiting. >> they are waiting with bated breath. the markets are a funny old thing because after yesterday we
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saw european markets have their biggest one-day fall since late july. today the markets have kind of rally. the reason they have found to back -- investors and the markets want spain to accept a rescue package. they are hoping and watching this budget, hoping this spanish budget will nudge madrid for the rescue program -- that will launch the central bank bond buying program, buying up of the troubled government debt like spain in the hope it will bring down the yield, the borrowing costs. that is important because justice -- just yesterday we saw spain's borrowing costs up 6% once again very entering the danger zone. one of the big problem for spain is of the region. regional debt is now becoming central with government debt. that is the question i asked at its -- experts earlier. on top of delivering the budget and structural reform, and madrid get back in line these
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regions? >> that is a very important question, particularly right now, because what we have heard this week of course is up in the north of spain, there is more talk about autonomy. the protests in barcelona a week ago. an awful lot of people asking for autonomy but that region is one of the more economic viable and they want more control over their purse strings, they don't want to necessarily see subsidies to the rest of spain. the worst time possible for the prime minister. he's now got a question about regions going for more autonomy. >> so, the spanish prime minister has its problems and the eurozone has its problems. the problem is, this is the backdrop upon which real business is going to have to make money. the paris car show starting today. what is the mood? >> the car manufacturing industries, one of the industries that has really taken a hammering. it is the world's biggest.
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the launch of 100 new models. but no shiny chrome will cover up the big worry that these guys have over the european market. you know, the european car market is the most competitive in the world but the worst performing in the world. even the gentleman car manufacturers, who were doing pretty well, almost looking -- proves they are no longer immune. volkswagen city of the conditions have "become significantly more difficult." don miller -- daimler cut its forecast. i asked -- i said the u.s. crisis in 2008 was very sharp and dramatic but the european car crisis is turning out to be a long distance marathon. so i asked them, where is the finish line? here is what he had to say. >> we have been in this industry since 125 years and we intend to
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stay there another 125 years at least. so there is the finish line. but in this industry, you never can lean back. you have to improve efficiency and, with exciting, great new- product of the time. of course the environment sometimes presents you with more tail winds that had winds. altogether, the economies have become more volatile. so flexibility is the name of the game. we do believe that we are very well positions in this thing that generally the premium manufacturers have a more supportive business model to succeed in the future than the volume manufacturers. >> i should quickly add one of the big problems for the car makers as well in east china. it was a market they are relying on it. china is now slowing, which means they will have to make tough decisions in cost-cutting and job cuts. >> thank you very much. the chinese dissident artist ai weiwei has lost his final appeal in a tax evasion fight that he says as politically motivated.
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the artists will have to pay $2.4 million following a ruling by an appeals court. from beijing, martin patients report. >> ai weiwei said this was a case he never believed he could win. during the entire legal process, he did not see the evidence against him. after the final appeal he addressed journalists outside the court. >> people say, you know the results of this from the beginning. that is true. the result today is not the result bus should have been given. china should be changing every day. but in truth, this is not happening. we are still living under a rock and legal system. this system cannot possibly have impartiality or justice. >> ai weiwei is china's most famous living artist, but he is also an outspoken critic of the ruling communist party. his high-profile case was carefully launched to see how
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chinese leaders choose to deal with dissent. last year, mr. ai was secretly detained for 81 days, sparking international condemnation. following its release, his firm was charged with tax evasion. he believes the charges were politically motivated, designed to silence him. in the hearings, authorities cannot allow him to attend proceedings, instead, his wife attended on his behalf. but now mr. ai has lost his final appeal and will have to pay a massive fine. ai weiwei has labeled china's legal system as backward and barbaric. he said he will not pay the tax fine against them, which is a move once again likely to put among collision course with authorities. bbc news, beijing. >> let's have a quick look at a couple of other stories making headlines today. in mexico, security forces say
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they captured one of the most wanted leaders of the zetas drug gang. ivan velazquez caballero, known as el taliban was captured in the north-central state. they've committed some of the worst violence in mexico's drug war and one of its most powerful drug cartels. astronomers have produced one of the most extraordinary views of the universe scene. this image from the hubble telescope shows galaxy stretching back almost to the time when the first stars began to shine. because the light has come from so far away, it shows the universe as it was -- wait for this -- 13.2 billion years ago. the u.n.'s refugee agency says the number of those fleeing syria could reach 700,000 by the end of the year. some 300,000 people have already escaped to a neighboring country -- countries and the agency warns they are running out of time to stem the violence.
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the organization as appealing for half a billion dollars to help support the refugees. unhcr regional coordinator for syriza refugees says 3000 people fled the country every day in august. >> this figure -- it is a humanitarian planning figure. it is based on trend. in august an average of 3000 refugees crossing the border. in september, we continue to have to thousand crossing the border. we are forecasting to continue to receive and help assyrian refugees as the cross, but also an increasing number of syr ian of the juice already in jordan or lebanon who are coming forward to register. we want to make sure our humanitarian factors -- 52 organizations, agencies, and you go's -- we are putting together planning to make sure we have diaz -- resources and humanitarian assistance to provide the bare minimum to help
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the syria refugees as they crossed the border and are ride to the neighboring country. >> that was a spokesman to the u.n.'s refugee organization. burma's president will address the united nations. the speech comes as the united states announced it is lifting the ban on the import of goods from burma. the opposition party led by aung san suu kyi has welcomed the lifting of the ban. the united states relaxed its financial restrictions after the country held elections earlier this year. here is out the u.s. secretary of state hillary clinton justified the move. >> the united states is taking the next step in normalizing our commercial will relationship. we hope this will provide more opportunities for your people to sell their goods into our markets. >> our correspondent jonathan hefad has been talking to the speaker of the burmese parliament, one of the top
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generals and the old regime. she gets -- began by asking about the state of relations between the government and opposition parties. >> i have a good relationship with aung san suu kyi. what happened in the past is over. it is finished. i don't see any point in dwelling on it. because she also loves the country, for people, we have the same intentions. she was locked up for many, many years. the >> she was locked up for many years, and the former ruler could barely speak kerning. doesn't it feels strange to work so closely with somebody once viewed by the government you were in as an enemy? >> it is not strange for me. i believe it is something we need, to deal with the presence of tuition. that is why i am collaborating with her very closely. aung san suu kyi is not my enemy and i am sure i am not her enemy, too.
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we have the same ambition, and that is to serve the interest of our nation and our people. we are colleagues. >> you were a senior figure in the old regime. very, very senior. why did it take so long for change to start, and why was the old system so harsh toward its opponents, so repressive? >> yes, it has taken some time to change our country. but it was like that because of the prevailing situation at that time. i believe the problem of ethnic armed groups was an important factor. although the government wanted to establish a multi-party system and a market economy, due to the situation then, it was not possible. >> and still to come on "gmt" -- >> i am on the west bank outside the mausoleum of yasir arafat as
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the current president abbas addresses the united nations. i will be examining whether the palestinians are any closer to achieving their dream of a state. that is a report here on bbc world news on the west bank. >> in austria, the hills are alive with people learning to yodel. the hiking trail recently opened in the west of the country with audio recordings and signs. >> if you have always wanted secretly yodel but were to the bears to let loose tri a high. a new trail in tirol offers tips and lessons. to thousand feet above sea level. >> you can do it on your own -- in pairs or in a group. on top of that, you can enjoy a heights against this incredible background and with this piece of you. i personally always find it easier to yodel -- these cries
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of joy, when i am up in the mountains. >> along the trail, signs and posts with audio recordings of yodelling. you press the button and sing- along. >> it is liberating, it it opens the soul. it is great, just great. it does the heart and soul a world of good. >> yodeling was originally used by -- shepherd's calling from peak to peak. these days, is undergoing some what of a revival. where better to practice that high in the hills? >> french football -- infamous 2006 had but has been immortalized in bronze.
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the statue outside the pompidou center in paris -- with the player bump heads with an italian player. he later apologized and said he was responding to an insult from the italian player. this is "gmt" from bbc world news. i'm george alagiah. the headlines -- protesters have been amassing around the parliament building in madrid as spain prepares to publish its austerity budget for next year. the u.n. refugee agency has given a warning that there could be as many as 700,000 syrian refugees in neighboring countries by the end of the year. sudan and south sudan will sign a deal that will resolve some of the disputes that brought the
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two to the brink of war. the leaders have reached an agreement that would allow for the resumption of seven oil exports through the north and establishment of a demilitarized border zone. the breakthrough came after four days of talks and the ethiopian capital. however, differences between the two still remain as they are still at odds over the all important demarcation of the border. palestinian president mahmoud abbas will address the united nations general assembly later today. he is expected to outline his hope for formal nonmember status in the u.n. and hopes for statehood. many palestinians are losing patience with the peace process set in motion by the oslo accords nearly 20 years ago. vana but barring -- zena has this report from our malia. >> the west bank city of rolla -- ramallah is where yasir
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arafat's body lies. he personifies the palestinian struggle for nationhood. for decades, he was the face of the palestinian cause, not only here but also on the international stage. but eight years after his death, little has been achieved and the prospect of a palestinian state is such a distant dream. in fact, many would argue the palestinian cause has actually lost ground. they believe the oslo accord signed by arafat nearly 20 years ago has brought them any closer to a two-stage solution. >> i think everyone is convinced the oslo accord is dead and can only be through international pressure. if it was at the palestinians and israelis, they would not achieve anything. >> there is no hope for oslo. it has been dead for a long time
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now, since 1993 we have talked about oslo but israel has destroyed oslo cents the year 2000 and destroyed the whole peace process. >> the chief of stuff -- of staff from up until two years ago believes it is time to -- the oslo accord. >> in the revolution in 1968 -- this was the slogan, one state democratic secular for everybody. and therefore, -- >> it is against this background of frustration over the stalled peace negotiations that president mahmoud abbas is expected to make his request for nonmember status at the u.n.. if you look around ramallah you see lots of palestinian flags. police but no army. nonmembers status at the u.n. be
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yet just another symbol of status. preparations have been finalized here in ramallah to open the first contemporary museum about the palestinian national movement. palestinians are open -- the tiny shoots of limited self rule even if the final goal of state would still seems a lot far off. bbc news, ramallah on the west bank. >> it is not what you know what you don't know what -- is what matters, especially if you are a leader of the country. that is what david cameron learn what he. -- appeared on the hugely popular late show with david letterman. he was quizzed by british history but just when he seemed to be winning, he blew it. our political editor has more. >> there were no questions about
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andrew mitchell or bork -- boris johnson, instead when dave wright cameron -- david cameron. on the late show he found themselves interrogated of british history and culture and revealed 1 heard two gaps in knowledge. >> the you mind if i ask you a lot of dumb american questions? >> pfeifer away. >> he was able to explain the differences between the nations of the u.k., the size of population and the extent of the british empire and the date and place where the magna carter was signed. but much to his embarrassment, he was not able to say what magma carter meant -- magna carvin mending was. >> the literal translation? >> again, you are testing a. >> it would be good if you knew this. >> i think it is good for the american public to be able to see him. >> i did not really have a view of them before this but i sort of like him. i am going to look him up on wikipedia. >> 3 million -- when david
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cameron returns on next week, he will be hoping he will not be asked to complete a citizenship test. >> a 17-year old australian boy is recovering after being bitten by one of the world's most poisonous snakes. doctors say he is lucky to be alive. it packs a enough of them to kill 100 people. it is a mystery as to how he came across the snake and the small town to the north of sydney. they are normally found hundreds of miles north of there. >> we have not seen them before. they are not from this area. to have somebody didn't is quite serious. he is extremely lucky to still be alive. >> before we take a break, a reminder of our top story. health-care workers in madrid have been protesting as the spanish government is presenting
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a new budget on thursday intended to make further reduction in its -- and stabilize the burden of accumulated debt. there is speculation in financial markets about whether state will seek a new eurozone bailout. the financial markets started to show new concern about spain. that is all for the moment. stay with us. >> make sense of international news at bbc.com/news. >> funding for this presentation was made possible by the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation, and union bank. >> at union bank, our relationship managers work hard
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to understand the industry you new ventures and help provide capital for key strategic decisions. we offer expertise and tailored solutions in a wide range of industries. what can we do for you? >> "bbc world news" was presented by kcet, los angeles. presented by kcet, los angeles.
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